ISOTEAM 5WF : 5WF 0%has agreed to divest its entire 1.18 per cent equity interest in clean energy solutions provider Sunseap Group for about S$12.2 million at S$270 per sale share, announced the construction group on Friday (Nov 5).

The shares will be sold to renewable energy producer EDP Renewables, who earlier this week bought a substantial stake in Sunseap which would value the company at S$1.1 billion, according to the latter company's statement on Nov 3.

The transaction is subject to approvals, with completion slated for Q1 of 2022.

ISOTeam in 2017 invested S$5 million, comprising 39,475 Series C convertible preference shares as well as 5,611 ordinary shares of the company, for its stake in Sunseap.

Through its divestment, the group is expecting a gain of S$4.2 million over the S$8 million book value of the sale shares as at end-Jun 2021, and a S$7.2 million gain over the S$5 million initial cost of investment.

Anthony Koh, chief executive of ISOTeam, said the divestment will improve the group's liquidity and allow it to reallocate resources to improve and optimise the utilisation of assets.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

This will also free up funds that can be applied towards the general working capital requirements of ISOTeam and the expansion of its renewable business, he added.

"We have enjoyed a long and synergistic relationship as one of Sunseap's major installation partners since 2015… ISOTeam's focus on the renewable energy business remains intact and we believe there will be opportunities to work together on more projects in the future as Singapore ramps up its SolarNova programme," commented Koh.

Shares of ISOTeam closed S$0.009 or 7 per cent higher at S$0.138 on Wednesday (Nov 3).